How Technology Is Transforming Saudi Arabia’s Healthcare Industry

The Saudi healthcare market is expected to generate US$464m in 2022, growing at a CAGR of 12.79% until 2025. Due to its young and growing population, it is estimated that Saudi Arabia will require more than 20,000 additional hospital beds by 2035. Innovations in technology and the global pandemic are amongst the key forces driving changes in Saudi Arabia’s healthcare industry at such an unprecedented rate. From patient care to medical research and training, every aspect of healthcare is being affected by technological advances and operational reforms.

Hospital stays are becoming shorter as more procedures can be carried out on an outpatient basis. This is thanks to advances in diagnostic techniques and treatments, as well as the availability of better-quality medical equipment. Over the coming years, it’s expected that healthcare will become increasingly digitised, improving the level of access and convenience for patients.

The Digitisation Of Healthcare

With the pressure of the global pandemic, Saudi’s healthcare industry has been forced to adapt to new ways of working at a pace that would have been unthinkable just a few years ago. The sudden and rapid increase in patient numbers has necessitated a more consolidated and connected approach to care. In response to this need, the Saudi government has begun working on the development of a unified vision of e-health provision across the Kingdom. It’ll enable patients to access streamlined, efficient, and high-quality care regardless of location.

At the heart of this transformation is the digitisation of healthcare. By making use of new and innovative technologies such as AI, big data, and cloud computing, Saudi Arabia’s healthcare system will be able to become more responsive to the needs of patients. What’s more, these tools will help to improve communication between different care providers, leading to better coordination and delivery of care.

New technologies are already being implemented across the Kingdom’s hospitals. AI is being introduced to interpret patient X-rays, taking some pressure off hospital staff. In the near future, Saudi doctors may be able to mine patient healthcare records using big data technology, to assist with diagnosis and the development of treatment plans. Health tech startups are also playing a crucial role in the digitisation of healthcare in Saudi Arabia.

There are currently 150 health tech startups operating within the Kingdom. One of these is Cura — a locally developed application that allows users to receive remote video consultations with doctors across 34 different specialities. Similarly, a new app named Labayh, gives users the ability to connect with a qualified counsellor or psychotherapist quickly and discreetly. These companies are developing innovative solutions that are making a positive impact on the lives of many patients.

Beyond Saudi Arabia’s borders, Neurosurgeons at John Hopkins performed their first augmented reality surgery in June 2021. VR headsets are also being deployed during medical training, to allow students to practice in a virtual environment before moving on to the real thing. This technology could be used to train the next generation of Saudi doctors, possibly in virtual spaces like the metaverse, to meet the Kingdom’s growing demand for qualified physicians.

How The Legal Industry Is Keeping Up With Development

As the healthcare industry evolves, the legal landscape must keep pace. With the wider proliferation of cloud data storage, the Saudi government introduced a new law that prohibits healthcare providers from storing the personal data of any Saudi national outside the Kingdom. The ongoing push towards Saudization also impacts the Healthcare industry. As it currently stands, each hospital must appoint a locally qualified doctor of Saudi nationality as a medical manager for the hospital, with some exceptions granted for hospitals in very rural or remote locations.

Negligence liability is still an area of Saudi law that does not yet have a well-defined framework. Saudi’s lack of legal precedence means that the results of civil cases are often unpredictable. This presents a challenge for both patients and practitioners when it comes to seeking damages for medical negligence. Most cases are resolved on the principle that a contract between two parties constitutes the law between two parties — unless it is in breach of some element of Shari’ah.

The way technology is impacting the healthcare industry is set to continue at an ever-increasing pace. As more countries around the world begin to adopt similar approaches, the potential for further improvement and efficiency is huge. For Saudi Arabia, the next few years will be crucial in shaping the country’s healthcare landscape for the future.

Opportunities For Chinese Investors In KSA

The Kingdom of Saudi Arabia is well-positioned to take advantage of the opportunities offered by China’s continued pursuit of an international investment strategy. With China’s CIC, the country’s sovereign wealth fund, seeking to diversify its portfolio and invest in foreign assets, Saudi Arabia is an attractive option.

As the world’s largest crude oil supplier to China, Saudi Arabia is in a unique position to offer energy security and assist the Chinese government to meet their growing energy requirements. Additionally, Saudi Arabia’s economic reforms have been designed to foster growth and attract foreign investment, making it an attractive option for Chinese businesses and investors.

The Saudi government is committed to developing the country’s infrastructure and has made significant investments in transportation and logistics. This will make it easier for Chinese businesses to access the Saudi market and set up operations in the Kingdom. KSA also has a large and rapidly growing economy, with a population of over 32 million people.

China & Saudi Trade Relations

The 2019 Aramco IPO was seen as a key part of the Kingdom’s economic diversification program in its efforts to attract foreign investment. Earlier this year, Saudi Aramco initiated a joint venture with China to develop a new refinery and petrochemical complex in the northeast of the country. Saudi Arabia will supply the new Huajin Aramco Petrochemical Company (HAPCO) with 210,000 barrels a day of crude oil feedstock.

This move represents a tightening of economic ties between the two nations and provides a significant boost to Saudi Arabia’s downstream sector. It also reflects China’s continued interest in Saudi Arabia as an investment partner and will strengthen Chinese-Saudi relationships.

In 2020, Chinese imports into Saudi Arabia increased by 17.8 per cent to $28.1 billion. Bilateral trade between the two nations continues to grow at a steady pace and is expected to continue to do so in the years ahead. Political commentator Zaid M. Belbagi told Arab News last year that China increasingly saw relations with the Arab world as “central” to its geostrategic ambitions. In 2017, King Salman visited the country during a six-country Asia tour, which set in motion a “comprehensive strategic partnership” between the two nations. With its strategic location, vast natural resources, and favourable economic climate, Saudi Arabia is ideally suited to assist China in achieving its economic goals in the Arab world.

The Future of Chinese Investment in Saudi Arabia

Looking to the future, it’s clear that there are significant investment opportunities in Saudi Arabia for Chinese businesses and investors. In 2020, the annual flow of foreign direct investments (FDI) from China to Saudi reached approximately $390 million. Rumours that Saudi would start accepting the Yuan during oil sales were quashed earlier this year by Aramco CEO Amin Nasser, but it’s undeniable that China sees Saudi Arabia as a key strategic and economic partner in the region.

For Chinese businesses and investors looking for opportunities in the turbulent global economy, Saudi Arabia remains an attractive and promising option. Chinese business leaders should keep a close eye on the Kingdom in the coming years as it looks to attract more foreign investment and continue its economic reforms.

Renewable Energy In KSA

The shift to renewable energy is essential for businesses in Saudi Arabia, as it provides a reliable, sustainable energy source that will help to support economic growth. In recent years, KSA has made major commitments to increase its use of renewable energy sources, including solar and wind power. These efforts are supported by new regulations and incentives that promote the adoption of clean technologies and sustainability practices across various sectors.

For businesses to succeed in KSA and compete in the global marketplace, they must consider renewables and cleantech as key factors in their overall business strategy.

Saudi Arabia’s Push Towards A Greener Future

Renewable energy has become increasingly important in KSA over the past few years as the country works to transition away from its reliance on fossil fuels. This transition has been supported by the Saudi Vision 2030 initiative, which aims to diversify the country’s economy and boost private sector growth. One of the primary focus areas of this plan is environmental protection, particularly through increased investment in clean energy sources.

This year, the government awarded two solar photovoltaic (PV) projects with an estimated value of $453m as part of a power-purchase agreement (PPA) that will increase the nation’s production capacity to over 1GW. This will help to align the country with its aim to derive 50% of its domestic electricity from renewable sources by 2030. The government hopes that its investment in renewable energy innovation will attract $20 billion in industry investments over the course of the next ten years.

The global energy trade is also expected to play an important role in the growth of renewable energy in KSA. As the world’s largest oil exporter, Saudi Arabia has historically been a global leader in energy production. However, as part of the worldwide shift towards greener energy sources, Saudi Arabia will be ideally positioned to become a leading exporter of renewable energy technologies with a particular emphasis on solar power. This would provide a major boost to the country’s economy and create new opportunities for businesses looking to invest in clean technologies.

As a result of these efforts, businesses in KSA are increasingly turning to renewable energy as a key part of their overall strategy. This is supported by the growing demand for clean technologies across various industries, including manufacturing, construction, and transportation. The adoption of such technologies can help businesses become more efficient and profitable, while also reducing their environmental impact.

New Regulations Impacting The Renewable Sector

This commitment to renewable energy is also reflected in new regulations and incentives that have been launched in recent years to encourage the expansion of the renewable energy sector. The Saudi government plans to introduce a new form of industrial licences within the renewable energy sector, that will provide companies with a competitive advantage in the marketplace. The Ministry of Energy also announced that they will offer incentives to energy project developers that will allow them to avail of certain benefits and custom exemptions.

Additionally, the Saudi Green Building Forum was launched in 2017 to promote sustainable building practices and support the development of green infrastructure. These initiatives are helping to create a more supportive environment for businesses that are looking to adopt clean technologies and sustainability practices.

Overall, KSA’s push towards a greener future is creating significant opportunities for businesses in the renewable energy sector. By embracing renewable technologies and sustainability practices, companies can not only reduce their carbon footprint but also gain a competitive advantage in a rapidly changing global marketplace. As such, it is essential for businesses to stay up to date on the latest developments in the renewable energy sector in order to make informed decisions about their future growth.

 

Corporate Governance & The Family Business

Family businesses are the backbone of the Saudi Arabian economy, accounting for 25% of all economic activity in the Kingdom. However, as the economic landscape becomes increasingly complex and globalized, many family businesses are struggling to keep up with changing times. One of the biggest challenges they face is ensuring good corporate governance.

Corporate governance is the system of rules, practices, and processes by which a company is controlled and directed. It includes the mechanisms through which a company’s affairs are conducted and managed, and the relationships between different stakeholders such as shareholders, directors, management, and employees. Keeping this system running smoothly is not always an easy task, but it is crucial for the long-term success of any family business.

Why Corporate Governance Is Essential To The Family Business

Good corporate governance is essential for any company, but it is especially important for family businesses. This is because family businesses are often more complex than other types of businesses. There are many different interests and opinions within a family, which can make decision-making difficult.

Without good corporate governance, family businesses can quickly become dysfunctional. This can lead to conflict between family members, which can damage the business and its reputation. It can also lead to financial problems caused by the business failing to make sound decisions about investment and expenditure. For all these reasons, good corporate governance is essential for family businesses to thrive in today’s ever-changing business world.

Aligning Governance With The Times

As Saudi Arabia continues to evolve, so too must the governance of its family businesses.  Governance must align with the current business environment, which is fast-paced and constantly evolving. The old ways of doing things no longer work in today’s climate, and family businesses must adapt to survive.

Saudi family-owned businesses often tend to be set in their ways when it comes to their internal governance structures and processes. This can be a hindrance to their growth and development. In many cases, succession planning, and transparency are not given the attention they deserve, which leads to problems passing on the business to the next generation.

Many internal processes such as human resource planning, tend to be informal and ad-hoc. This can lead to inefficiency and poor record keeping. And as we move into an era that is quickly being defined by the ever-growing presence of risk and crisis, family-owned businesses must have the internal governance structures in place to allow them to tackle these challenges effectively.

With the Saudi Arabian government’s aim to attract more foreign investment, it will also become increasingly important for the Kingdom to uphold a more regulated and compliant business environment. As a result, new laws and regulations are being introduced, and family businesses will be required to comply. And as more businesses choose to go public, there is a heightened need for transparency and accountability. If good corporate governance practices are implemented effectively, family businesses can open the doors to new sources of capital.

The Kingdom of Saudi Arabia continues to evolve, and so too must the governance of its family businesses. By aligning governance with the current business environment, family businesses can make the right decisions and avoid unnecessary conflict. This will help them to protect their reputation and help establish long-term success.

What is the Legal Impact of Web 3?

Apart from Dubai being a tourist destination, it’s a haven for web 3 and the cryptocurrency community. On March 9, 2022, the city approved the first law for the regulation of operations of digital assets, such as non-fungible tokens (NFTs) and cryptocurrencies. The news was confirmed through a tweet by Sheikh Mohammed bin Rashid Al Maktoum, the prime minister of the UAE.

Under the new law, Dubai wants to establish itself as a key player in designing the global future of virtual assets. In addition, the UAE seeks to form a Virtual Assets Regulatory Authority (VARA), which will be an independent body under the Dubai World Trade Center. VARA will oversee the governance, licensing, and setting of regulations for NFTs, cryptocurrencies, and other virtual assets. As a result, the city has become an epicenter for web 3 entrepreneurs from all over the world.

Web 1.0 and Web 2.0

The World Wide Web, referred to as web 1.0, dates back to the 90s. Web 1.0 was made up of web pages connected by hyperlinks. This first generation of the web was read-only, where businesses only shared information for you to search and read it.

Then in the 20s, web 2.0 came to life, the current version of the internet. The platform created a rise in eCommerce and social media platforms like Facebook, Instagram, and Twitter. This improved version of the first worldwide web has a more friendly user-generated interface. During web 2.0, users have been able to work and earn money through various platforms.

However, in web 2.0, users are needed to give out personal information to access and use the ‘free’ services provided by tech giants like Amazon, Google, and Microsoft. The information gathered is then sold to third parties like shopping sites to offer you targeted advertisements.

Web Version 3.0 Explained

Gavin Wood, a co-founder of the Ethereum cryptocurrency, popularized the term web 3 in 2014 to describe anything involved with the changes on the internet for the next generation by making the platform a decentralized digital infrastructure. A cryptocurrency is a digital currency that does not rely on a central authority like a central bank or the government. As a result, transactions done through web 3 technologies, such as peer-to-peer payments, are free from the control of any central governing body.

Web 3 is a new version of the web built on blockchains that are peer-to-peer and decentralized. This format will allow people to control what is published, archived, and stored in secrecy.

A blockchain is a database hosted by a network of several computers instead of a single computer. This distributed ledger offers its users a transparent and unchanging way of storing information.

A blockchain-centric internet will be harder to manipulate and control since the technology used will be the same as in the cryptocurrency technology, which is built to prevent “double-spending.” This means computers will store data on a network instead of servers as it is now, making it easy to track the stored data as there will be an established record of the movement pattern.

An example of a web 3 application is the peer-to-peer payment app that works on blockchains where instead of opening a bank account, you can use the decentralized app (Dapp) to make payments. Examples of peer-to-peer apps include;

  • Ziina
  • Zand
  • mePay
  • Rise
  • YAP
  • NOW-money

How Web 3 Will Impact Businesses

The third phase of worldwide web evolution will bring revolutionary changes to the UAE’s mode of operating its businesses. There are four main types of legal business structure in the UAE, which include:

  • Individual establishment – Owned by a single person and responsible for its financial obligations
  • Civil company – Established by investors from local and foreign countries to provide specialized services in the UAE. They include but are not limited to lawyers, doctors, consultants, and engineers
  • Commercial company – Business arrangements between two UAE nationals where each partner is responsible for the company
  • Limited Liability Company – Involves more than two but less than fifty, and each partner is responsible to the company according to the shares bought

The introduction of web 3.0 will allow companies to work efficiently by cutting out the middleman through the connection of artificially intelligent computers. As a result, businesses will experience optimum growth. Below are the benefits and challenges that web 3 will present.

1. Streamlined Business Process

With web 3 integrated into the business format, companies and sole proprietorships will find it easy to maintain their transactional ledger. As a result, continuous customers will enjoy personalized services as their previous purchase information is readily available.

2. Provides an Efficient Collaboration With all Involved Parties

Most businesses fail because there is a lack of transparency. However, web 3 will make the business more transparent to all the parties involved. This is achieved through an unchangeable chain of records visible to everyone on the blockchain.

As a result, slow-performing companies will suffer stiff competition due to the end-to-end transparency system that provides real-time transactional proof and supply chain activities to its customers.

3. No-third Parties

Blockchain technology will allow a business owner to control all their in-house operations, including directly contacting the customer. Although it will reduce cost, save time, and make the business more competitive, third-party service providers will experience a decline in their business due to the lack of demand for their services.

Web 3 might be revolutionary, but it also presents various sets of challenges. For example, if your cryptocurrencies like Bitcoin or Ethereum are stolen, you lack a way of pursuing the case due to a lack of centralized control. In addition, due to the nature of public distributed ledgers which makes transactions visible to all, making it directly opposite to privacy

Why You Should Stay Alert on Web3

Businesses will undoubtedly adapt to web 3 technology as it offers a higher competitive advantage. However, before getting involved in the space, all businesses–small or large, existing or start-ups- should know that endless legal issues can arise. This is because the space is relatively new, and laws are continuously being created to regulate the industry.

Web 3 is still at its infancy stage, and the already existing technologies prove that the future of the internet will usher new tides in businesses. As Dubai fully embraces the idea by creating regulatory bodies to control the space and attract investors, understanding this new technology and its impact on your business will benefit you and your business.

Hammad & Al-Mehdar law firm dutifully serves the legal needs of regional businesses and individuals from the five offices across the Kingdom of Saudi Arabia and the United Arab Emirates. Our firm is well-positioned and structured to handle legal issues while providing you with support to navigate through the implications of web 3 in your business or industry. Contact us for more information or legal representation.

The Legal implications for Education Institutes in the Kingdom of Saudi Arabia

For any institute, the legal aspects are of utmost importance regardless of the nation. This pertains to the registration of the institute, the qualifications and experience of the staff, contracts with parents and other institutes, and dealing with government departments.

Education institutes in Saudi Arabia need to consider a range of regulations when establishing themselves. These include regulations relating to their physical premises, the curriculum they offer, and the staff they employ. Ensuring compliance with these regulations is essential for any institute wanting to operate in Saudi Arabia. These regulations include:

1.      Mergers and acquisitions (M&A)

When it comes to M&A, education institutes are no different than any other type of organization. There are several legal considerations which need to be taken into account, and it is important to cover the full cycle of the merger in order to ensure a smooth transition.

Financial considerations will be key, as the educational institute will need to assess the value of the target institute and agree on a fair price. It is also important to have an operational model in place so that the educational institute can continue to provide quality education and services to its students.

2.      Operational model

The operational model is one of the regulations which education institutes in Saudi Arabia need to consider. An operational model is a set of procedures and processes that an organization uses to produce products or services. It includes the organizational structure, the division of labor, and the way resources are allocated. When establishing an educational institute in Saudi Arabia, it is essential to develop an operational model that complies with its regulations.

3.      Partner Agreements

Partner agreements are contracts between two or more organizations that outline their roles and responsibilities in a joint venture. When establishing an educational institute in Saudi Arabia, it is essential to have partner agreements in place with any partners involved in the venture. These agreements should clearly define the roles and responsibilities of each party and how decisions will be made.

4.      Asset Management

Asset management is the process of identifying, acquiring, developing, and maintaining assets to maximize their value to the organization. When establishing an educational institute in Saudi Arabia, it is essential to implement an asset management plan that complies with the country’s regulations. This plan should identify the assets required for the institute and how they will be acquired, developed, and maintained.

5.      Expansion

An expansion is the process of growing an organization by expanding its operations into new markets or by acquiring other organizations. When establishing an educational institute in Saudi Arabia, it is essential to consider the potential for expansion and how this might be achieved. The institute’s expansion plans should comply with the country’s regulations and should be achievable within the desired timeframe.

How can education institutes ensure compliance with the law?

For education institutes to ensure compliance with the law, they need to have a comprehensive understanding of the applicable laws. It is also important for institutes to have a well-versed legal team in Saudi and UAE law and can provide guidance and support when required.

Institutes should also put in place systems and processes that ensure all employee conduct is in line with the law. This includes ensuring that employees are aware of the legal requirements and policies in place and implementing disciplinary procedures for staff who do not comply with the law.

What legal challenges could educational institutes face?

There are several legal challenges that could face an education institute in the Kingdom of Saudi Arabia.

One such challenge is the process of merging with another academic institute. This process must be undertaken in accordance with the regulations set by the government and can be a complex and time-consuming procedure.

Another challenge is the operational model of the institute. The model must be compliant with the regulatory framework to protect all stakeholders’ interests.

Financial considerations are also key, as institutes often need to secure finance in order to fulfill their objectives. A partnership agreement is essential in order to protect both the interests of the partner and the academy.

Expansion is another key issue for institutes as they look to extend their reach into new markets. Careful planning and execution are required in order to minimize any legal risks.

Real estate and asset management are important aspects of an education institute’s operations and must be undertaken in a responsible manner. Any breaches of regulations in this area could lead to significant legal penalties.

What are the benefits of compliance with the law?

There are a number of benefits to be had when an education institute complies with the law. Perhaps the most obvious is that it demonstrates a commitment to best practice and a desire to operate safely and legally.

Compliance with the law also helps to build trust with regulators, parents, and students. It shows that an institute takes its responsibilities seriously. This also indicates that it is committed to safeguarding the welfare of its clients.

Lastly, compliance with the law can help to protect an institute from potential legal action. This can include financial damages, as well as damage to reputation.

Education institutes in the Kingdom of Saudi Arabia need to be aware of the legal implications that come with running their institute. There are a number of laws and regulations that institutes need to adhere to in order to protect their students and staff and avoid any legal penalties.

Institutes should seek legal advice to ensure they are aware of their responsibilities and help comply with the relevant laws. A reputable law firm can help with all aspects of running an institute, from drafting contracts and policies to representing the institute in legal proceedings.

If you are looking for legal assistance in establishing an educational institute in Saudi Arabia, don’t hesitate to contact Hammad & Al-Mehdar Law Firm. Our experienced team can help you navigate the regulatory landscape and ensure compliance with all relevant regulations.

What Are the Legal Implications of Health-Tech?

Over the years, there has been unprecedented growth in digital health used in delivering healthcare across the GCC states. However, the COVID-19 Public Health Emergency (PHE) has accelerated digital transformation in the healthcare industry more than in any other industry.

With the rise in demand to meet patients’ needs and control over their health, tech companies are coming up with new tech advancements in in-patient management diagnostics and treatment. Inventions like e-prescriptions, electronic medical records (EMR), and healthcare information and management systems (HIMSS), among others, have changed how healthcare is delivered to patients.

However, like any other industry undergoing rapid growth, health tech faces dramatic legal changes; for instance, in 2019, the UAE president issued the health data law, which aims at regulating the use of technology in the healthcare industry. Moving forward, tech companies in these spaces should expect heightened legal scrutiny from various regulators.

The following are some legal considerations in health tech.

1. Regulatory Bodies

Companies developing medical devices that incorporate Artificial intelligence (AI) and machine learning (ML) should abide by the Ministry of Health and Prevention (MOHAP) new approaches to regulate health tech. Companies must provide their proposals and any other critical information about any of the machines to be installed and used in healthcare.

Recently, a blockchain-based health data storage platform was introduced to help MOHAP efficiently provide smart health services to patients. The guidance by the regulatory bodies will help companies developing medical devices clarify to what extent the products will be regulated.

2. Fraud and Abuse

As healthcare operations are adopting technology, every person involved, from providers to vendors and payers, must adopt key practices to prevent or minimize fraud and abuse. All models involved in digital delivery create different types of risks under the legal theories, which the Ministry of Justice(MOJ) has taken a key interest in.

MOJ scrutinizes different healthcare vendors, for instance, those that provide electronic medical records. Organizations must provide consumers using medical insurance cards with relevant knowledge on how to protect themselves against questionable actions.

The companies must also have appropriate monitoring and enforcement strategies to eradicate fraud and abuse, according to the Saudi Arabia Anti-fraud and abuse regulation body.

3. Antitrust

Balancing data sharing, and data blocking, is one of the greatest antitrust concerns in digital health. Oversharing data in digital health is much more complicated compared to any other industry. While some companies can positively welcome the idea, sharing data in digital health can lead to regulatory issues.

Limited sharing can make a provider dominant in the market; while this isn’t necessarily a bad thing, it creates different antitrust issues, for instance, abuse of dominance. Abuse of dominance is considered a breach of antitrust, which results in lawsuits, and heavy fines, among others.

4. Data Privacy

Healthcare professionals must protect the confidentiality of patient’s medical data at all costs, and any breaches in the data should be reported immediately and appropriately. Relevant companies must comply with data protection in the right manner to prevent exposure to any liability when handling sensitive patient data.

All the following issues should be put into consideration when handling sensitive data:

  • Seek consent in data processing, particularly in clinical trials
  • Ensure that data subjects are notified about secondary uses of data, for instance, in the case of research
  • Healthcare providers and pharma businesses impacted by any data flaws are allocated compliance responsibilities
  • All consent should be explicit, specific, and informed

5. Product Liability

Product liability is a type of law in which the law holds the producer (manufacturers, suppliers, retailers and distributors) responsible for any product defects that cause injuries to patients. In digital health, many people can be held liable in case of litigation; such people include:

  • Data provider
  • Software developer
  • Device manufacturer
  • The company responsible for commercialization

The Consumer Protection Association of Saudi Arabia aims to protect consumers’ interests and safeguard their rights. All those who fail to meet the established professional standards, requirements and ethics must face disciplinary actions.

6. Employers Liability

As more and more digital devices are adopted by employers, there will be a need to analyze data collected by all these devices. Analysis of data comes with its own set of risks to the employer; for instance, if a patient is harmed due to any foreseeable issues that weren’t addressed, then the employer can be held liable.

A foreseeable issue depends on what the employer knows or doesn’t know. As a way to protect the employer, digital health providers must not disclose personal health data to the employer.

7. Ethical Use of Artificial Intelligence

With the rise in technology in healthcare, there is more focus on the use of AI. Several guidelines have been produced over the years to help with the evaluation and implementation of digital technologies in the healthcare industry. However, even with this, there have been cases of discrimination and biases made by AI systems.

As a result, there have been increased calls to make these systems more transparent. Companies must adapt and implement good governance when it comes to procuring and implementing AI systems in healthcare.

8. Cybersecurity

Every day, organizations are becoming susceptible to cyber-attacks that are threatening confidential information and disrupting daily activities. Hospitals, particularly private hospitals, store a lot of information that is worth lots of money in the wrong hands.

All the healthcare organizations accessing patients’ data must comply with any laws set, including the proposed Personal Data Protection Law (PDPL). Ensuring digital health solutions are in compliance with the set laws is one way to reduce and prevent cyberattacks.

The healthcare industry is quickly adopting technology to provide health services smarter and faster. However, with technology comes great risks that affect everyone involved. Regulatory bodies are increasingly becoming focused on the health tech space and new products introduced in the healthcare industry.

Even though there are various opportunities for healthcare delivery models, the responsible companies must tread lightly and ensure they are in compliance with the rules and regulations in all the GCC states.

If you are facing any issues in the health tech sector, our attorneys at Hammad & Al-Mehdar can help. The attorneys will provide you with practical solutions thanks to their years of experience and high knowledge. Contact us for assistance.

Types of Partner Agreements and their importance

The most important relationship in any business venture is between the two or more partners. Partner agreements protect all parties involved whenever a disagreement arises, which can be difficult for business owners to handle on their own.

Most jurisdictions do not require partner agreements for partnerships, which has led to the misleading notion that they’re not important in a partnership, however failure to devise a comprehensive legal agreement has led to several high-value claims, which have resulted in business failure.

What Is A Partner Agreement?

A partner agreement is a contract between two individuals in a business relationship. The agreement lays out the terms of the relationship, including each partner’s responsibilities, rights, and liabilities. The agreement can also include provisions for how the business will be run, how profits will be distributed, and what will happen if the partnership ends.

Creating a partner agreement can help prevent disputes down the road by clarifying each partner’s role and expectations. It can also give each partner a greater sense of security, knowing that there is a written agreement in place.

Types Of Partner Agreements

There are many types of partner agreements, we explore three primary kinds: buy-sell agreements, operating agreements, and partnership agreements. Each type of agreement has different purposes and benefits.

A buy-sell agreement is an agreement between business partners that outlines what will happen if one of the partners wants to sell their interest in the business. This agreement can help prevent disputes between partners and ensure that the business continues to operate smoothly if one partner leaves.

An operating agreement is a contract between the business partners that outlines the roles and responsibilities of each partner, as well as the management and ownership structure of the business. This agreement can help prevent misunderstandings and disagreements between partners.

A partnership agreement is a general contract between business partners that specifies their roles in the partnership, their investments, and their responsibilities. This type can be categorized further based on the different types of partnerships, such as a partnership limited by shares, limited partnership, general partnership, or joint ventures.

Who Needs A Partner Agreement

In most jurisdictions, partner agreements are not required by law. However, without a partner agreement in place, government regulations regarding partnerships will apply, which may put some partners at a disadvantage on matters tax liability, business continuity, or even sharing profits.

That said, you need a partner agreement if:

  • You’re concerned about the continuity of your business/ partnership if a partner dies or is incapacitated in a way that prevents them from fulfilling their obligations to the partnership.
  • You and your partners are concerned about the fair distribution of profits, work obligations, and tax liability.
  • You and your partners are from different jurisdictions. A partner agreement will help streamline any conflict resolution that may be needed, as it would take precedence over state law.

Why Partner Agreements Are Necessary

There are many reasons why partner agreements are necessary. First, they help to avoid misunderstandings and conflict between partners. Second, they provide clarity about each person’s role in the business. Third, they can help protect the business if one of the partners dies or becomes incapacitated. Fourth, they can help to resolve disputes between partners.

Any business with more than one owner should have a partner agreement.

The Benefits Of Partner Agreements

As business partners, it is important to have a legally binding agreement that outlines the roles and responsibilities of each party and the expectations for the partnership. A partner agreement can help prevent misunderstandings and disputes down the road and provide a clear path for resolution if problems arise.

There are many benefits to having a partner agreement, including:

  1. Clarifying the Roles and Responsibilities of Each Partner
  2. Establishing Ground Rules for the Partnership
  3. Protecting Each Partner’s Interests
  4. Preventing disagreements and Disputes
  5. Setting Out a Path for Resolution if Problems Arise

How Partner Agreements Differ By Industry

When it comes to partnerships, there is no one-size-fits-all agreement. The terms of a partnership will vary depending on the specific industry in which the partners operate. For example, in the construction industry, partners may agree to share responsibility for liability and workers’ compensation claims. Partners may agree to share patient records and other confidential information in the healthcare industry.

Each industry has its unique risks and challenges, so partners must take the time to understand the nuances of their particular agreement. Doing so will help ensure that all parties are protected if something goes wrong.

The Evolution Of Partner Agreements Globally In A Digital World

As the world has become more digital, business operations have changed dramatically. One of the most crucial aspects of running a business in the modern world is having a strong and enforceable partner agreement. This is especially true for businesses that operate internationally.

The globalization of business has led to an increase in the use of partner agreements. As businesses expand their operations into new markets, it is essential to have a clear understanding with their partners about what is expected from each side. A partner agreement can help ensure that both parties are on the same page and clear about their respective rights and obligations.

The rise of the internet and online commerce has also impacted partner agreements. Many businesses now operate entirely online, which has created new challenges when it comes to enforcing agreements.

When one party is based in one country and the other in another, it can be difficult to take legal action in case of breach of contract. Partner agreements can help solve this problem by stipulating that disputes should be resolved through arbitration in a specified jurisdiction.

In response to the growing globalization and digitalization, three countries: Singapore, Chile, and New Zealand – have come up with a novel solution dubbed, The Digital Economy Partnership Agreement (DEPA) that seeks to resolve the problem of enforcing partner agreements across different jurisdictions.

Partner agreements are integral to a mutually beneficial partnership that does not disadvantage any partner. Lacking one puts a partnership and its partners at a serious disadvantage.

Tele-health and Data Protection Laws

Telehealth continues to be a promising healthcare model within the GCC region. More specifically, The United Arab Emirates (UAE) and the Kingdom of Saudi Arabia (KSA) are some of the countries across the region that are actively leading in advancing modern healthcare services. Recent reports indicate that the governments of both countries are applying vigorous frameworks to enhance the development of telehealth services.

With the advances in telehealth, new data protection laws are also being enacted, as each country strives to protect its citizens. This means that investors must conduct due diligence when investing in modern healthcare in the region, specifically given the increased regulations across the industry. Currently, remote patient monitoring (RPM), Health, and virtual visits are some of the healthcare technologies that are poised to thrive in the buoyant GCC market.

The Trends and Challenges of Telehealth in the UAE and Saudi Arabia

In societies such as KSA or the UAE, where relational connections are esteemed and direct specialist-patient communication is standard, challenges in employing technology will inherently bring with it challenges.

Regularly, patients are concerned of the doctor’s experience, the impact of innovation, security, and protection during sessions. Aversion toward the utilization of innovation is driven by age, orientation, and religion.

Likewise, the absence of information or involvement with the innovation and the requirement for preparing are normal obstructions. Likewise, a few suppliers assume the use of this innovation with shortcomings (e.g., diagnosing could take more time), loss of income, and compensation troubles (e.g., most patients pay through cash on hand).

However, telehealth is a promising model for medical care administrations in KSA and the UAE. The market which incorporates virtual visits, mHealth, and distant patient observing are projected to reach $536.5 million by 2025 in the UAE at a yearly development rate of 28.2 percent. In Saudi Arabia, the market is projected to reach $415.4 million enrolling development at a 24.2 percent CAGR north of 2019 figures.

In the aftermath of the pandemic, telehealth’s degree is augmenting as social distancing has provoked an unexpected interest in contactless medicine and made it a significant innovation to assess, oversee, and follow patients without in-person assessments.

Government-led Digital Health Initiatives

Public-private partnership models, as well as consumer-centric services, have increased and all contributed to the increased telehealth demand in Saudi Arabia and the UAE.

The Digital Health Strategy 2018, launched by KSA, and the Innovation Strategy 2019-2021, launched by the UAE, have been the chief drivers of digital healthcare transformation in each of the countries.

Both nations have prioritized preventive care and wellness to boost investment toward social determinants of health (SDOH) projects, resulting in immense growth prospects for companies operating within the telehealth sector.

Telehealth Legal Regulations in the UAE and Saudi Arabia

UAE

At the federal level, the extension of Cabinet Decision No. 40/2019 on the Implementing Regulation of Federal Decree-Law No. 4/2016 on clinical risk (“ICT Health Law”), named “Controls and Conditions of Providing Remote Health Services” (“Federal Telehealth Regulations”) explicitly covers a scope of telehealth administrations including:

  • Distant clinical interview and solution
  • Remote prognosis
  • Remote clinical observing and mediation

The Abu Dhabi Department of Health’s (“AD DOH”) Standards for the Provision of Tele-Monitoring Services apply in Abu Dhabi, and the “Dubai HA Standards”, or Dubai Health Authority’s Principles for Telehealth Services are the vital pieces of guideline/strategy to be alluded to.

There are additional guidelines that apply explicitly to suppliers situated inside the Dubai Healthcare City free zone in the UAE, explicitly Health Data Protection Regulation No 7 of 2013.

KSA

Across Saudi Arabia, the pertinent authorities have given choices, methods, and rules to manage the utilization of telehealth. This incorporates but is not restricted to the following:

  • Dated 25/04/1441H, the Ministry of Health Decision No. 7/88is an authority instrument that supports KSA’s other telemedicine law, the Regulation Governing Telehealth
  • The country’s earlier telemedicine law or “Telehealth Regulation” also dubbed the Regulation Governing Telehealth issued by the National Health Information Center (“NHIC”)

The Telehealth Regulations require that an administration organization direct and screen telemedicine and is the Saudi Telemedicine Unit of Excellence, which will work inside the Saudi Health Council’s NHIC.

Legal Challenges That CTOs Need to Consider

Most people do not widely understand the role of a chief technology officer (CTO), but it is one of the most crucial of all C-suite positions. CTOs are tasked with various duties in pursuit of a variety of abstract goals, which usually include driving innovation, identifying new technologies that are entering the market, and managing all IT operations.

The digital transformation has begun to redefine the role of the CTO and companies are seeking to ensure that it is in line with business priorities. This means the responsibilities of the CTO are changing drastically and being impacted by new legal regulations. As a result, it’s crucial that whatever innovation they are championing is be compliant with the law of the land.

One of the legal challenges that CTOs face is in the collection, storage, management, and protection of their clients’ information. They must prevent any kind of cyber threat using digital solutions and platforms that are legally compliant with the law.

Legal Issues That Need to Be Prioritized

Digital transformation significantly impacts IT security, regulation, data protection, and contract design. CTOs should consider the following legal issues:

  1. Compliance
  2. Intellectual property protection
  3. Data security

Intellectual Property (IP) Law

The key components of IP law that CTOs need to consider during the digital transformation are as follows:

  • Trademarks
  • Copyrights
  • Trade secrets

A trademark is a distinctive name, logo, or symbol used to distinguish one product or service from another. Trademarks allow potential customers to evaluate the reputation of the manufacturer or service provider.

Original artistic works, such as music and film, are often protected by copyright. Authors have exclusive rights to reproduce and distribute copies publicly, create derivative works, and perform their work. However, to obtain the initial copyright they are entitled to under common law, the author must register their work with the relevant authority.

A trade secret refers to a legally protected piece of information that a company doesn’t wish to disclose to the public. Such secrets include:

  • Formulas
  • Processes
  • Patterns
  • Compilations
  • Programs
  • Methods
  • Devices
  • Techniques

Contract Law

Digital transformation carries risks that business owners and CTOs must be aware of. Digital servers and independent software developers are two examples of these risks.

CTOs should consider encryption software, train employees about the safe storage of proprietary information, and use non-disclosure agreements (NDAs) to ensure that no information is leaked out.

Compliance

As a result of digital transformation, companies are rethinking how they relate to and serve their customers. Many companies focus on collecting, storing, and using customer data. These murky legal waters need to be carefully traversed.

When implementing digital transformation, the concerns of CTOs should revolve around:

  1. Data mining and control
  2. Use of data for advertisement
  3. Data protection and compliance

Companies must clearly distinguish between personal and non-personal information to comply with data protection laws. Additionally, they should also adhere to all applicable state and industry regulations when storing user information. To ensure they are adhering to all applicable codes of conduct, a global company may want to consult with an experienced law firm.

The Evolving Role of the CTO

The high rate of advancement in technology has led to a significant transformation of the role of the chief technology officer. To perform their role effectively, the CTO must exemplify adaptability in the face of the changing technological landscape and prioritize the integration of IT strategies within the company’s brand strategy.

Consequently, a well-evolved CTO understands that their job description fits neatly within flexible parameters. What’s more, in order to help the company grow, a CTO must be willing to step outside their comfort zone. The COVID-19 pandemic has had a significant impact on the CTO’s role over the past two years, requiring them to operate in a state of constant evolution to ensure company survival.

How Tech Is Impacting Businesses in the UAE and Saudi Arabia

With the UAE having one of the world’s highest rates of Internet penetration, the pandemic has spurred a rise in e-commerce activity across the country. E-commerce ventures in the United Arab Emirates have more than doubled within the last two years. When it comes to cutting-edge digital transformation technologies, the United Arab Emirates and Saudi Arabia are the global leaders.

As a result of Saudi Arabia’s strong IoT adoption, four technologically advanced economic cities have emerged. This has been an essential part of Saudi Arabia’s efforts to diversify its economy and attract foreign direct investment.

Technological advancements have bolstered the Middle East’s economy in recent years. The government and private sector have all made significant investments in 5G, AI, IoT, blockchain, cloud computing, and cyber-security.

The United Arab Emirates and Saudi Arabia have invested heavily in artificial intelligence, positioning them at the forefront of the fourth industrial revolution. It is expected that the Kingdom of Saudi Arabia will remain a global leader in the implementation of smart city projects thanks to big data and artificial intelligence (AI).

Consumers in the United Arab Emirates have taken notice of the growth of e-commerce in recent years. Visa and MasterCard have grown in prominence, and more than half the global population now use their cards to make purchases of all kinds. As a global consumer market, the UAE has always been a major player in the industry.

A Good CTO in the MENA Region Must Be Innovative

In the Middle East and North Africa, digital technology is changing the way businesses and governments operate. This increased use of technology is enhancing the region’s economic growth and competitiveness. As a result of the Middle East’s insatiable appetite for innovation, the region is well-positioned to take advantage of the latest digital opportunities.

CTOs must have the vision and foresight to see how new technologies can help their organizations compete more effectively in the region. Today’s top-performing CTOs can’t just sit back and watch as their competitors embrace new technologies.

With new technologies, it’s essential to keep an eye on the customer. An increasingly tech-centric, collaborative, and agile organization necessitates a shift in the role of technology leadership.

It may become challenging for Chief Technology Officers to comply with all legal requirements that arise during digital transformation, especially within the Gulf region. Just as technology changes, numerous laws are amended, and thus at times, CTOs may not be up to date with the latest legal requirements. In this case, it is crucial to work with an experienced law firm that guides you accordingly throughout your business’s growth stages.